Duval Times

U.S. Senator Marco Rubio (R-FL) and U.S. Representative John Moolenaar (R-MI) have introduced the Patriotic Investment Act, a new bill aimed at changing how investments in China are taxed under the U.S. tax code.

Many Wall Street financial firms invest heavily in Chinese enterprises, which are often linked to China's military, use forced labor, and violate trade rules that impact American businesses and jobs. These investments currently benefit from a low capital gains tax rate.

"The Capital gains tax rate was meant to encourage investment in American innovation, not fund an oppressive communist regime, but Wall Street continues to give money to our adversaries and reap rewards from the American tax system. Enough is enough. My Patriotic Investment Act will level the playing field and ensure that our tax code no longer encourages investments that undercut American businesses and workers," said Senator Rubio.

Congressman Moolenaar added, "For too long, Americans investing in China’s military-industrial complex have been given unfair tax breaks that allow them to profit from funding our adversary. That’s wrong and Senator Rubio and I are introducing this legislation to put a stop to this special treatment. Our nation’s tax code should be incentivizing investment in the United States, not collaboration with the CCP."

The proposed legislation would remove the beneficial capital gains tax rate for investments in Chinese securities, taxing these gains at the highest income rate instead. This change would apply only to future financial gains, not those already accrued. Companies and individuals would have six months to divest after the bill's passage and could spread their tax payments over three years.